Enstar sees Homer trunk line by October

Enstar Natural Gas Co. expects to finish building pipeline infrastructure to Homer and Kachemak City by the end of October, according to federal permitting paperwork.

The bulk of the project this year includes a 23-mile trunk line from Anchor Point to Kachemak City through Homer, distribution main lines in Homer and some service lines, according to a wetlands permits application with the U.S. Army Corps of Engineers.

Altogether, the work would require placing some 111,115 cubic yards of gravel into some 15.02 acres of wetlands. The Corps is taking comments through Feb. 11.

Homer and Kachemak City are currently determining how each city will fund the expansion of distribution lines to local homes and businesses. While Homer officials are working to finalize a Natural Gas Special Assessment District to fund its nearly $13 million build-out, Kachemak City is considering the formation of a local investor group.

Additionally, local and borough officials are considering whether to approve a $3 million low-interest loan from the Kenai Peninsula Borough to help fund distribution lines. The proposed ordinance also includes a provision to lend $300,000 to Kachemak City. The goal is to finance the construction at a better rate than could be found in private markets.

And Homer is also considering a separate ordinance that would allow the city to defer payments to the special assessment district for certain low-income homeowners. The special assessment district is expected to cost homeowners some $3,200 over 10 years.

—Eric Lidji